Bernstein’s Pierre Ferragu believes concerns regarding “cloud cannibalization” have subsided in recent quarters, with F5 Networks, Inc.
Ferragu downgraded the rating on the company to Market Perform, with a price target of $140.
The analyst mentioned that F5 Networks had issued robust guidance for 2017, expected sequential
“The cloud secular bear case against which we have been fighting the last couple of years was likely proven wrong and the recent weakness in product growth is now more widely accepted,” Ferragu stated.
However, underlying secular growth in F5 Networks’ primary market,
“From this perspective, we are concerned that the recent stock price leaves limited room for upside, even if the company is in a decent position to achieve or beat expectations for 2017,” the analyst explained.
|Nov 2016||Bernstein||Downgrades||Outperform||Market Perform|
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